Insight - No panic for sterling traders as Brexit fatigue sets in

Cash sterling weekly turnover rose 35% in the third week of September from late August, Refinitiv data shows – but is below most weeks in September and October in 2019 and 2018, when worries about a no-deal Brexit intensified before deadlines to reach earlier agreements with the EU.

BRITAIN may be heading for a no-deal Brexit in three months, but for traders in London, the feeling so far is one of deja vu rather than a panicky rush to dump UK assets.

After Britain threatened to ditch parts of its European Union divorce deal this month, markets are pricing in a 40%-45% chance of exiting the EU trading bloc without any alternative arrangements at the end of 2020. Some banks see it higher.